Back to top

Analyst Blog

On Monday, ING Groep NV (ING - Snapshot Report) announced a deal to sell its entire stake in China Merchants Fund (CMF) to its joint venture (JV) partners of the fund. Founded in 2002, China Merchants Fund is a JV between ING Investment Management (33.3%), China Merchants Bank (33.4%) and China Merchants Securities Co. Ltd (33.3%).

The deal will bring €98 million ($128 million) in cash to ING and is anticipated to be completed in the second quarter of 2013, subject to certain regulatory terms and conditions. Upon closure, it is also likely to result in a profit of approximately €64 million ($83.6 million).

ING is under stipulation by the European Union to sell its insurance and investment management division by 2013, since it had been granted a bailout fund by the Dutch government during the financial crisis in 2008. The deal marks ING’s first stride towards the divestment of its Asian insurance and asset-management business. Earlier in September, Ameriprise Financial Inc. (AMP - Analyst Report) was almost in final stages of talks to acquire the majority of the Asian asset-management unit of ING, excluding the joint ventures.

Previously, under the regulatory authorities’ orders, in August, the company announced the sale of ING Direct Canada – the Internet banking division of ING Bank of Canada – to The Bank Of Nova Scotia (BNS - Snapshot Report). Further, in February 2012, it completed the sale of its online banking unit – ING Direct USA – to Capital One Financial Corp. (COF - Analyst Report).

We believe completion of such deals will help ING in repayment of bailout funds to the Dutch government. Further, it will help ING to pay more attention to its core businesses amidst a bleak macroeconomic environment.

ING currently retains a Zacks #4 Rank, which translates into a short-term Sell rating.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%